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Full text of "Shipping Practice"

GENERAL AVERAGE                                   67

The essential features areó

1.  Extraordinary sacrifice.   The sacrifice must be extra-
ordinary and not the sacrifice of articles by using them for
the purpose for which they were provided, e.g. rockets and
flares which are used for distress signals are provided for this
purpose and are, therefore, not a general average expense.

2.  Voluntary sacrifice.   The sacrifice must be a voluntary
one, and where property is potentially lost it cannot be
considered to have been sacrificed and is, therefore, not a
general average act.

3.  General. The peril must be general, and the interest
must be for all, and not one party only, e.g. for the advan-
tage of ship or cargo alone.

There are general average losses and general average
expenditures,

A general average loss is a direct loss due to a general
average act, such as jettison of cargo, damage to ship's
engines, forcing ship off ground, or material burnt for fuel.

A general average expenditure is an expense incurred due
to a general average act, as for example expenses of entering
a port of refuge or of repairs, or of discharging and reloading
cargo necessary for repair purposes.

The calculation of the amount lost or expended on the
general average act in case of damage to a ship is based on
the reasonable cost of repairing the vessel, less a deduction
of "New for OlcL" A shipowner having his vessel repaired
due to a general average act is, after such repairs have
been made, in a better position than he was before such
general average act, because he has new material where
previously there was only old, and consequently a deduction
or allowance must be made for this.

Cargo is based on the market value of the goods at the
port of destination on the last day of discharge. If goods
are destroyed the consignee receives the market value of
the goods less such expenses (landing charges, customs
duty, etc.) as he would have been called upon to pay had
the goods been delivered.

Where goods have been delivered damaged, then the